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loss experienced by Hurst in reacquiring its 8% bonds? (Assume the
firm used straight-line amortization.) Show calculations.
4. (TCO E) Parker Corporation has issued 2,000 shares of common
stock and 400 shares of preferred stock for a lump sum of $72,000
cash.
Instructions:
(a) Give the entry for the issuance, assuming the par value of the
common was $5 and the market value $30, and the par value of the
preferred was $40 and the market value $50. (Each valuation is on a
per-share basis and there are ready markets for each stock.)
(b) Give the entry for the issuance assuming the same facts as (a)
above except the preferred stock has no ready market value, and the
common stock has a market value of $25 per share.
5. (TCO F) Describe the journal entry for a stock dividend on
common stock (which has a par value)
6. (TCO A) At December 31, 2010, Kifer Company had 500,000
shares of common stock outstanding. On October 1, 2011, an
additional 100,000 shares of common stock were issued. In addition,
Kifer had $10,000,000 of 6% convertible bonds outstanding at
December 31, 2010, which are convertible into 225,000 shares of
common stock. No bonds were converted into common stock in
2011. The net income for the year ended December 31, 2011, was